Liberty Energy Inc.

Welcome to the Liberty Energy Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Anjali Varia, Director of Investor Relations. Please go ahead.

Thank you, Allison. Good morning, and welcome to the Liberty Energy first quarter 2025 earnings conference call. Joining us on the call are Ron Gusick, Chief Executive Officer, and Michael Stock, Chief Financial Officer. Before we begin, I would like to remind all participants that some of our comments today may include forward-looking statements reflecting the company's views about future prospects, revenues, expenses, or profits. These matters involve risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed in our earnings release and other public filings. Our comments today also include non-GAAP financial and operational measures. These non-GAAP measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted net income per diluted share, adjusted pre-tax return on capital employed, and cash return on capital invested are not a substitute for GAAP measures and may not be comparable to similar measures of other companies. A reconciliation of net income to EBITDA and adjusted EBITDA, net income to adjusted net income, and adjusted net income per diluted share, and a calculation of adjusted pre-tax return on capital employed and cash return on capital invested, as discussed on this call, are available on our investor relations website. I will now turn the call over to Ron.

Good morning, everyone, and thank you for joining us to discuss our first quarter 2025 operational and financial results. Liberty delivered a solid first quarter with revenue of $977 million, net income of $20 million, and adjusted EBITDA of $168 million, and distributed $37 million to shareholders through opportunistic share repurchases and dividends. We saw strong sequential improvement in utilization across our fleet, reached new heights in operational efficiencies and safety performance, and set a new high watermark in asset lifespan for equipment components. Our early year results demonstrate a positive rebound from the fourth quarter of 2024, a trend that has continued into the second quarter. In recent weeks, tariff announcements and a more aggressive OPEC Plus production strategy have sent ripples across the energy sector. Today, we have excess demand for liberty services as our customers align themselves with top-tier providers in a clear industry flight to quality. While North American producers have not yet meaningfully changed development plans, we expect our customers to assess a range of scenarios in anticipation of commodity price pressure, and we are staying close to our partners in this dynamic market. As we all know well, the oil and gas industry is cyclical in nature. and periods of uncertainty test the strength and resilience of players across the value chain. The outcome of tariff negotiations, as well as forward production plans for OPEC+, could yield a wide range of outcomes in the future. In the face of these potential outcomes, we are applying our core tenets to guide our team in charting a course to meet any potential challenges, support our customers, suppliers, and our employees and build an even better business with enduring advantages. Today, we are better positioned than ever to navigate market uncertainties with greater scale, vertical integration, technological advancements, and a fortress balance sheet. Over the past few weeks, we have stayed in constant dialogue with our customers and suppliers, collaborating on ways to expand efficiencies and actively engaging on tariff mitigation strategies. Our engineering teams are having more dialogue with customers on optimizing completion practices using our comprehensive completions and production database and multivariate analysis tools to make more informed decisions. Our operations team is leveraging real time data analytics using over 1 billion data points collected daily to maximize efficiencies and drive lowest total cost of delivery. These insights further extend to our ongoing collaboration with our supplier partners, and this visibility allows our collective teams to react quickly and decisively in a rapidly evolving environment. Prior cycles have proved the resilience of our strategy of leading the industry with discipline while strategically enhancing our competitive edge. As global oil markets contend with tariff impacts, geopolitical tensions, and oil supply concerns, North American producers are evaluating a range of macroeconomic scenarios. The recent pause on tariffs has momentarily eased pressure on the global economy and, in turn, global oil demand concerns. However, markets remain focused on supply-side dynamics, including the evolving OPEC Plus production strategy and potential constraints on Iranian, Russian, and Venezuelan oil exports. Natural gas fundamentals are more favorable on rising LNG export capacity demand in support of global energy security. While the current tumult in commodity prices is not immediately driving changes in North American activity, we expect oil producers are evaluating a range of scenarios in anticipation of oil price pressure. Concurrently, gas producers could prove to be beneficiaries of potentially lower associated gas production in oily basins, Today, we have not seen significant change in oily customer activity. However, we are optimizing our fleet schedule to accommodate additional activity for our gas customers. In contrast to prior oil and gas cycles, recent years have seen steadier activity in both higher and lower commodity price environments. Larger, well-capitalized producers that comprise a larger portion of shale production today are better able to withstand a broader range of commodity prices, while smaller producers may be more reactive to market swings. Since the pandemic-driven downturn, the energy sector has seen significant consolidation, as well as a strong focus on capital discipline and balance sheet strength. And most producers have targeted flat to modest production growth. Today's frac activity simply supports maintenance of current oil production levels, mitigating the possibility of steep declines experienced by the service industry in past cycles. While macroeconomic risk could lead to lower oil production in North America, the industry is operating from a higher base of production today than in prior cycles, implying a decline in service activity would likely be less pronounced than in the past. Liberty's differential service platform is stronger today than at any point in the last 14 years. Our unmatched scale, integrated services, robust supply chain, and advanced technology systems uniquely enable us to deliver more value, lowering the total cost to produce a barrel of oil. Fleet modernization with advanced sensors, real-time data capture, and enhanced data visualization tools is driving tangible benefits and improving decision making, allowing our teams and customers to respond faster and more effectively in a dynamic market. We are also working closely with our customers to bring innovative engineering and designs to their completion strategies. This integrated high-performance model reinforces our position as the service provider of choice in a competitive market. Strategic investments in equipment technology, digitization, and power generation has positioned us to deliver safer and more efficient operations with reduced fuel and parts consumption and improved reliability. These advancements in equipment component longevity demonstrate these benefits. In the last three years, the average life expectancy has increased 27% for engines, 40% for fluid ends, and an impressive 37% for power ends over the last two years, in part through the implementation of AI-driven predictive maintenance strategies and continuous machine learning. Furthering these efforts, in the first quarter, we launched the Hive, our next generation digital intelligence hub, a centralized platform right here in Colorado that monitors frac operations with 24-7 oversight, enabling the Hive tech team to provide real-time solutions to the teams in the field. These are only a few of many technology initiatives driving real tangible value to our operations and our customers alike. As we look ahead, We are currently anticipating sequential growth in revenue and profitability in the second quarter from higher utilization. Our priority is to maintain a strong balance sheet, which will allow us to navigate in any environment while executing on our long-term strategic plan. We are actively assessing the implication of tariffs across our business and have already begun mitigation efforts. Michael will expand further on this. Strategic investment has allowed us to develop new markets and lead technology innovation and operational efficiency in the industry. Growing power demand from data centers, manufacturing, mining, and industrial electrification is enabling us to expand our power services beyond the oil field. The acquisition of IMG, a leader in distributed power systems, opportunistically augments LPI with power plant EPC management and PJM utility market operations and expertise, that we would otherwise have built over a period of time, accelerating our entry into the PJM market. We also cultivated bench strength with key leadership in the first quarter. Our pipeline of power opportunities across North America continues to grow, including projects in oil and gas, the commercial and industrial space, and smaller data centers up to 250 megawatts in size. We recently announced an MOU with Range Resources and Imperial Land Corporation for potential industrial development that would be anchored by a cutting edge LPI power generation facility. Conversations with two other partners for similar agreements are underway. We still anticipate delivery of our first generation capacity in the third quarter with packaging to be completed in the fourth quarter and operations beginning in Q1 of 2026. We are excited by the opportunity ahead to expand in these key growth areas. Before I turn the call over to Michael, I want to highlight distinct advantages we have in a potentially changing market. Top tier customers who are well capitalized and less sensitive to commodity swings. Loyal and committed suppliers and partners. A strong balance sheet. Technological achievements that place us in an even better position today than prior cycles. And a strong culture that binds our teams to deliver at the highest level. I will now turn the call over to Michael to discuss our financial results and outlook.